Tag: Technical Trading

  One of the growing trends in the US equity market since around 2016 is an increased concentration in the top components in equity indexes, namely the Big Tech firms like Apple, Amazon, Facebook, and Google.  As you can see in the chart below, the weight of the top 10 S&P 500 components increased from… Continue reading Weakening Market Breadth: A Tale of Two Stock Markets

  Insiders at public companies are selling stock at the highest rate in recorded history amid near-record high valuations and the S&P 500 at all-time highs. But, should we be concerned? After all, most insiders are rewarded shares by their employer and sell them to buy a boat or a Corvette. They’re employees, not stock… Continue reading Why Are Corporate Executives Selling So Much Stock?

  We have another shortened trading week due to Christmas Eve landing on Friday. Historically, the last few weeks of the year feature low volume, low conviction trading because most of Wall Street is too busy headed to the Hamptons or Sarasota to put on big trades. However, as a result of the Omicron drama… Continue reading Stock Market Outlook for Week of December 20, 2021

  Have you ever wondered why stock traders on Wall Street always pay close attention to the U.S. Federal Reserve’s meetings and activities? Well, the Federal Reserve, commonly referred to as the Fed, is the most important central bank in the world because of the U.S. dollar’s special role as the main reserve currency for… Continue reading What Are FOMC Meetings And Why Are They So Important?

  It is well known that the stock market experiences periods of unforeseeable, and sometimes sharp, price movements. And if you’re owning stocks during such volatile periods, the fair market value of your portfolio could change drastically before you sell the stocks. Until you sell, your profit or loss is just on paper since you’ve… Continue reading Realized vs Unrealized Gains: What’s The Difference?

  The stock market has almost entirely recovered from the Black Friday-Omicron plunge and the price action outlook is beginning to look bullish again, with last Tuesday’s price action showing very strong conviction off the lows from the bulls.  Before we move onto assessing what’s coming for this week, let’s take a quick look at… Continue reading Market Outlook for Week of December 13, 2021

  Online media group BuzzFeed is now a publicly-traded company after completing a SPAC merger where it fetched just $16.2 million in fresh capital. Shares of the New York-based startup began trading on the Nasdaq stock market on Monday, Dec. 16 under the ticker “BZFD“. BuzzFeed went public after its investors voted in favor of… Continue reading BuzzFeed Goes Public, Raises $16.2 Million

  What is Tax Loss Harvesting? Tax loss harvesting is when an investor sells a position at a loss to help offset capital gains tax liabilities at the end of the year. To understand what tax loss harvesting is, let’s create a hypothetical portfolio.  It’s December 15, and the following is your portfolio:   Here’s… Continue reading What Is Tax Loss Harvesting?

  The debate over the relative merits of simple moving average (SMA) and exponential moving average (EMA) is a contentious one. Day traders and investors alike often miss out when they choose one over the other. In this post, we lay out the differences and explain the advantages and disadvantages of each. We are also… Continue reading SMA vs EMA – Which Is Better For Day Traders?

  If you’re wondering what position trading is, you have come to the right place. Position trading can be appealing for a number of reasons. Stock traders who want to take a hands-on approach to trading may be drawn to the research and various strategies needed to be an efficient position trader. But is position… Continue reading What is Position Trading and How Does it Work?